Greg Jackson, founder of Octopus Energy, said to incoming UK prime minister Andy Burnham that electricity market reforms could reduce household energy bills [1].
This proposal comes as the UK government seeks ways to stabilize energy costs for citizens and reduce the financial burden of wholesale pricing volatility.
Jackson said the government should overhaul wholesale pricing and market rules to lower the cost of electricity for households [5]. According to Jackson, these changes could slash annual energy bills by approximately £200 [1]. Other estimates of the potential savings vary, with some reports stating the average household could save up to £189 [4] or around £114 per year [3].
The proposal focuses on changing how electricity is priced at the wholesale level to prevent price spikes that are passed on to consumers. By restructuring these rules, the government could potentially decouple retail prices from the volatility of the global gas market, a move intended to create more predictable pricing for the public.
Jackson provided these recommendations to Burnham as the new prime minister prepares to take office. The plan seeks to modernize the grid and the pricing mechanisms that govern how energy is bought and sold across the United Kingdom [1].
While the specific legislative path for these reforms remains unclear, the focus on market overhaul reflects a growing push for systemic change rather than temporary subsidies. The disparity in projected savings—ranging from £114 [3] to £200 [1]—highlights the complexity of implementing such a large-scale shift in the national energy infrastructure.
“Market reforms could reduce household energy bills.”
The proposal suggests a shift from short-term government interventions, such as price caps or subsidies, toward a structural redesign of the UK energy market. If adopted, these reforms would aim to lower the baseline cost of electricity by removing inefficiencies in wholesale pricing, potentially providing long-term relief to consumers regardless of global fuel price fluctuations.
